This paper analyses the link between regional inequalities and GDP per capita at the country-level. Our
starting hypothesis is that the evolution of regional inequalities should follow a bell-shaped curve as national
GDP per capita rises since growth by its very nature is unlikely to appear everywhere at the same time, as has
been argued by a number of authors, from Kuznets [Kuznets, S., (1955), Economic growth and income
inequality, American Economic Review 45(1), 1¿28] to Lucas [Lucas, R.E., (2000), ¿Some macroeconomics for
the 21st century¿, Journal of Economic Perspectives 14 (1), 159¿168].We test this hypothesis econometrically
using semi-parametric estimation techniques and regional data for a panel of European countries. Our results
provide strong support for such a bell-shaped curve and are robust to changing the regional administrative
units and the time period, as well as controlling for other possible determinants of regional inequalities. We
also find support for this hypothesis when considering non-European countries.
BARRIOS Salvador;
STROBL Eric;
2010-01-26
ELSEVIER SCIENCE BV
JRC56711
0166-0462,
http://www.sciencedirect.com,
https://publications.jrc.ec.europa.eu/repository/handle/JRC56711,
10.1016/j.regsciurbeco.2009.03.008,
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